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`UNITED STATES PATENT AND TRADEMARK OFFICE
`______________________________________________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`______________________________________________
`
`
`
`FRIENDFINDER NETWORKS INC., STREAMRAY INC., WMM, LLC,
`WMM HOLDINGS, LLC, AND MULTI MEDIA, LLC
`Petitioners
`
`
`
`v.
`
`
`
`WAG ACQUISITION, LLC
`Patent Owner
`
`
`
`U.S. Patent Nos. 8,364,839 and 8,122,141
`
`
`
`_______________________________________
`
`Inter Partes Review Case Nos. IPR2017-00784 and -00786
`_______________________________________
`
`
`
`
`
`PATENT OWNER’S OPPOSITION TO PETITIONERS’ MOTION FOR
`JOINDER TO INSTITUTED INTER PARTES REVIEWS
`
`
`
`
`
`
`
`
`

`

`
`
`
`
`This is the Opposition by Patent Owner, WAG Acquisition, L.L.C.
`
`(“WAG”), to the motion by Friendfinder Networks Inc., Streamray Inc., WMM,
`
`LLC, WMM Holdings, LLC, and Multi Media, LLC (collectively, “Petitioners”) to
`
`join the instant proceedings with recently instituted IPR proceedings, which are
`
`IPR2016-01239 (regarding U.S. Patent No. 8,364,839 (the “’839 Patent”)) and
`
`IPR2016-01238 (regarding U.S. Patent No. 8,122,141 (the “’141 Patent”).
`
`The IPRs sought to be joined, IPR2016-01238 and IPR2016-01239, were
`
`both filed by Webpower, Inc. (“Webpower”), and are referred to herein as the
`
`“Webpower IPRs.” Counsel for Webpower in the Webpower IPRs is the same
`
`counsel that is representing the present Petitioners. In addition, the Petitioners, by
`
`the same counsel, have filed prior IPRs challenging the same WAG patents.
`
`Patent Owner opposes Petitioners’ motion for joinder because the instant
`
`Petitions and motions are second bites at the apple for Petitioners, and Petitioners
`
`have failed to explain why the instant grounds and arguments were not raised in
`
`prior (and timely) petitions.
`
`Petitioners had their chance and filed IPR petitions against both the ’839 and
`
`’141 Patents in 2015, within a year of having been served with complaints alleging
`
`infringement of the ’839 and ’141 Patents. The primary reference in both of the
`
`Webpower IPRs was known to and asserted by Petitioners in 2015. Petitioners
`
`simply chose not to assert the current grounds and arguments at that time. And
`
`
`
`1
`
`

`

`
`
`
`
`Petitioners have given no reason for their failure to make the current arguments
`
`years ago.
`
`Joinder is discretionary. 35 U.S.C. § 315(c). As indicated in legislative
`
`history, the Board determines whether to grant joinder on a case-by-case basis,
`
`taking into account each case’s particular facts. See 157 CONG. REC. S1376 (daily
`
`ed. Mar. 8, 2011). As the moving party, Petitioners have the burden of proof in
`
`establishing entitlement to the requested relief. 37 C.F.R. §§ 42.20(c), 42.122(b).
`
`The Board has exercised its discretion to deny joinder in numerous cases
`
`such as this, in which petitioners attempt a second opportunity to pursue arguments
`
`that could have and should have been raised in earlier, timely IPRs. See, e.g., LG
`
`Elecs., Inc. v. ATI Techs. ULC, Case IPR2015-01620, slip op. at 10 (PTAB Feb. 2,
`
`2016) (Paper 10) (denying joinder because petitioner did not demonstrate “a
`
`reasoned justification” for its failure to assert current challenges in earlier petition,
`
`or present evidence that new references were “not known or available” at the time
`
`of the earlier petition). “There is merit in encouraging a petitioner to raise in its
`
`first petition all grounds and claims that reasonably could be raised, to avoid serial
`
`attacks against a patent and reduce the burden on patent owners of defending
`
`multiple proceedings.” Par Pharm., Inc. v. Novartis AG, Case IPR2016-01059, slip
`
`op. at 17 (PTAB Oct. 26, 2016) (Paper 19).
`
`
`
`2
`
`

`

`
`
`
`
`Background
`
`Petitioners Friendfinder Networks Inc. and Streamray Inc. were served with
`
`complaints alleging infringement of the ’839 and ’141 Patents on June 3, 2014.
`
`Petitioners WMM, LLC and WMM Holdings, LLC were served with complaints
`
`alleging infringement of the ’141 Patent on April 15, 2014, and Petitioner Multi
`
`Media, LLC was served with a complaint alleging infringement of the ’141 Patent
`
`on April 16, 2014. (Exs. 2001-05.)
`
`On April 14, 2015, Petitioners filed petitions for Inter Partes Review of the
`
`’839 and ’141 Patents (herein referred to as the “2015 IPRs”).1 The primary
`
`reference in IPR2015-01036, which was instituted and in which a final written
`
`decision was issued on October 20, 2016, was U.S. Patent No. 5,822,524 to Chen
`
`et al. (“Chen”). Chen is the primary reference in both Webpower IPR Petitions that
`
`Petitioners seek to join. Further, the Carmel reference used in Webpower’s
`
`IPR2016-01238 on the ’141 Patent was also asserted in Ground 4 of Petitioners’
`
`2015 IPR on the ’839 Patent. See IPR2015-01036.
`
`
`1 Petitioners WMM, LLC, WMM Holdings, LLC, Multi Media, LLC were not listed as
`petitioners in IPR2015-01036 regarding the ’839 Patent, but were listed as Real Parties in
`Interest. Further, prior Board decisions establish that one petitioner being barred bars all
`petitioners. See, e.g., Ubisoft, Inc. v. Uniloc USA, Inc., Case IPR2016-00414, slip op. at 5-6
`(PTAB June 2, 2016) (Paper 16) (denying joinder, in part, because some of the petitioners had
`previously filed a petition); see also Terremark North America LLC v. Joao Control &
`Monitoring Systems, LLC, Case IPR2015-01482, slip op. at 5, 14-15 (PTAB Dec. 28, 2015)
`(Paper 10) (tying petitioners together because barred petitioner had “substantial control over the
`case by participating in filing the Petition, appointing counsel, etc.” and setting bar date for
`petition to earliest date of service on one petitioner).
`
`
`
`
`3
`
`

`

`
`
`
`
`Argument
`
`Petitioners have failed to sufficiently explain in the present Petitions why
`
`their petitions in the 2015 IPRs did not contain the grounds and arguments set forth
`
`in the Webpower IPRs.
`
`The Webpower IPRs raise a couple of new secondary references, but
`
`Petitioners have given no reasoning as to why these new secondary references are
`
`not cumulative of prior references and, if not cumulative, why the references could
`
`not have been found using reasonable efforts for use in the 2015 IPR petitions.
`
`Rather, Petitioners held back grounds and arguments as to known prior art in
`
`their 2015 IPRs, which Petitioners now seek to assert almost two years later in a
`
`second bite at the apple. The Board has previously denied joinder in many similar
`
`cases. See, LG Elecs., Inc. v. ATI Techs. ULC, Case IPR2015-01620, slip op. at 10
`
`(PTAB Feb. 2, 2016) (Paper 10) (denying joinder); Samsung Elec. Co., Ltd. v.
`
`Affinity Labs of Texas, LLC, Case IPR2015-00820, slip op. at 4-5 (PTAB May 15,
`
`2015) (Paper 12) (denying joinder because the petitioner offered no persuasive
`
`reason why the asserted grounds of unpatentability could not have been raised in
`
`earlier filed petitions); Reloaded Games, Inc. v. Parallel Networks, LLC, Case
`
`IPR2014-00950, slip op. at 4-5 (PTAB Oct. 22, 2014) (Paper 12) (denying joinder
`
`as “second bite of the apple” because petitioner could have raised grounds of
`
`unpatentability in prior petition); Apotech, Inc. v. Synopsys, Inc., Case IPR2015-
`
`
`
`4
`
`

`

`
`
`
`
`00760, slip op. at 7-9 (PTAB July. 21, 2015) (Paper 14) (denying joinder as second
`
`bite where the petition “simply presents arguments that reasonably could have been
`
`made [in the prior petition], but were not.”); see also Toyota Motor Corp. v. Am.
`
`Vehicular Sciences LLC, Case IPR2015-00262, slip op. at 6 (PTAB Jan. 29, 2015)
`
`(Paper 10) (denying joinder in part because petitioner could have presented the
`
`new grounds and arguments in its earlier petition and did not sufficiently explain
`
`why it failed to do so); Ubisoft, Inc. v. Uniloc USA, Inc., Case IPR2016-00414, slip
`
`op. at 5-6 (PTAB June 2, 2016) (Paper 16) (denying joinder in part because some
`
`of the petitioners had previously filed an IPR petition regarding the patent in
`
`question that did not include the asserted grounds, and did not sufficiently explain
`
`the failure to do so).
`
`It is clear that the primary reference asserted in the Webpower IPRs was
`
`well-known to Petitioners years ago, and Petitioners have not even attempted to
`
`justify their delay in making the current arguments.
`
`Petitioners’ IPR2017-00784, regarding the ’839 Patent, is especially
`
`concerning. Grounds 5 and 6, which were instituted in Webpower’s underlying
`
`IPR2016-01239, concern claims 5, 12, and 19 of the ’839 Patent. These claims
`
`were not instituted in the 2015 IPR, IPR2015-01036. Petitioners here are using the
`
`Board’s prior decision as a roadmap to refine their arguments. “[P]articularly
`
`where [the Board’s] Decision to Institute has been used as a roadmap to remedy
`
`
`
`5
`
`

`

`
`
`
`
`deficiencies in an earlier petition, [the Board] exercised [its] discretion under 35
`
`U.S.C. § 315(c) and declined to grant joinder.” LG Elecs., Inc. v. ATI Techs. ULC,
`
`Case IPR2015-01620, slip op. at 7-8 (PTAB Feb. 2, 2016) (Paper 10) (citing
`
`cases). “A decision to institute review on some claims should not act as an entry
`
`ticket, and a how-to guide . . . to challenge those claims which [the petitioner]
`
`unsuccessfully challenged in the first petition.” ZTE Corp. et al. v. ContentGaurd
`
`Holdings, Inc., Case IPR2013-00454, slip op. at 5–6 (PTAB Sept. 25, 2013) (Paper
`
`12). Petitioners here are using the Board’s prior decision on the ’839 Patent as a
`
`guide to the current Petitions. The Board should exercise its discretion here to deny
`
`Petitioners from doing so.
`
`Conclusion
`
`For the foregoing reasons, Patent Owner respectfully requests that the Board
`
`deny the Motions for Joinder and that the Petitions be dismissed as time-barred.
`
`
`
` Dated: February 20, 2017
`
`Respectfully submitted,
`
`
`
`/Ronald Abramson/
`Ronald Abramson
`(Attorney for Patent Owner)
`Reg. No. 34,762
`212-822-0163
`
`
`
`6
`
`

`

`CERTIFICATE OF SERVICE
`
`Pursuant to 37 CFR § 42.6(e), the undersigned certifies that on February 20,
`
`2017, a complete and entire copy of this Patent Owner Opposition to Petitioners’
`
`Motion for Joinder to Instituted Inter Partes Review was provided to the
`
`Petitioners via email to FMGasparo@Venable.com and TJAga@Venable.com, as
`
`authorized in Petitioners’ mandatory notices, and that on February 21, 2017, once
`
`Patent Owner’s Mandatory Notices were approved, a complete and entire copy of
`
`this Patent Owner Opposition to Petitioners’ Motion for Joinder to Instituted Inter
`
`Partes Review was provided to the Petitioners by filing through the PTAB E2E
`
`System.
`
`Dated: February 21, 2017
`
`/Ronald Abramson/
`Ronald Abramson
`(Attorney for Patent Owner)
`Reg. No. 34,762
`
`

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